The sum of discounted costs are subtracted from the sum of discounted benefits. Projects with positive net present value should be considered; the greater the net present value, the more justifiable the project. However, a large project could have a higher net present value than a smaller project, even if it has a lower benefit-cost ratio. This relationship is illustrated in graphs found in the Graphical Representation section.
## Calculating the Net Present Valuen+1 = the number of years over which benefits and costs are analyzed First, discount the costs and benefits in future years. Σ (B |

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